It is not possible to pay your federal taxes directly from your state refund. It never has been, regardless of what software you prepare your taxes with.
The amount that I received for my State refund has the $520 deducted so TurboTax kept the $520 and never gave it to the IRS
When you owe taxes to "any" taxing authority, TurboTax does not, can not, and will not be a middleman in that transaction. So there is no way possible that TurboTax has your money.
Maybe you elected to pay your TurboTax fees from your refund? I'm not sure if you can elect that option to pay TurboTax from your state refund. I know you can from your federal refund. But if you owed the IRS, then there's no way you elected to pay your TurboTax fees from any federal refund since you did not get a federal refund.
